Applied behavioral science (ABS): ABS is the study of systems and sub systems that interact within themselves and link to other systems. These self-organizing systems evolve by both internal and external feedback. Systems theory can serve as a framework for understanding relationships between communities, organizations, groups and individuals with an emphasis on change.

Appraisal: An appraisal is the process of defining and reporting the market value of specific property on a certain date. A licensed and/or certified real estate appraiser conducts an appraisal.

Automated valuation model (AVM): Automated evaluation services were developed in response to a growing need for low cost, quick response property evaluations. While not a complete appraisal, these abbreviated reports provide much of the same information and can be completed in a matter of a few hours or less. They are used by lending institutions to estimate property values. However, they can't take into account unique features or factor in the affect of changing neighborhoods.

Bracketing: Bracketing is the principle of balance and it has been largely supportive to real estate loan underwriting and appraisal review. It uses characteristics of the property to fit within a range of value. Moreover, these characteristics in analysis appear on both sides (plus or minus) of the estimate of market value. It's this bracketing (+/-) concept that weighs heavily around market value which has gained acceptance by appraisers. If a property can't be bracketed, an appraisal is usually required to determine a home's value.

Comparative Market Analysis (CMA): Used to help establish a realistic price range for a home. A CMA usually includes a review of comparable properties in the immediate area currently on the market or that have recently sold.

Decline: To tend toward an inferior state or condition.

Depreciation: Three basic types of depreciation are 1. normal from wear and tear of improvements; 2. functional obsolescence from non-typical function of various components of the home and site improvement inside of the property lines; and 3. economic obsolescence generated from a source outside of the property lines that adversely impact the value of the site and home improvements.

Evaluation: An assessment of value or as in the determination of value.

Immediate neighborhood: Although a home is in a general neighborhood, it sometimes belongs to a "sub" neighborhood with other homes that share a style, condition, utility or amenities.

Market value: The value of a property at a price at which both buyer and seller are willing to do business. (See The Appraisal Foundation for a full definition.)

Neighborhood: A section of a city or unincorporated area that usually has distinguishing characteristics and natural or man-made boundaries.

Personal preferences: Items installed or attached to the home that have particular personal value but that may or may not translate to market value (market in exchange).

Rehabilitation: When a neighborhood is restored to a former state or brought to a condition of useful and constructive economic and social activity.

Remodel: Applies to spaces that are created that do not exist in the original structure.

Renovate: To restore to a structure to a former state by cleaning, repairing or rebuilding.

Revitalization: When a neighborhood in decline is given new life or vigor.

Return on investment (ROI): The money a homeowner will recoup after investing in a home improvement project. Depending on the project, homeowners might not get any return on investment at all. Or the return might come only after a certain number of years, or it might be only a percentage of the money spent.

Updating: Replacing or refurbishing worn or outdated aspects of the home, such as out-of-style fixtures, carpeting or other items easily removed and reinstalled with something new or more fashionable.

Valuation: An estimation of a thing's worth; estimated value or price; as the just valuation of a property.

Valuation services: services pertaining to aspects of property value. Pertains to all aspects of property value and include services performed both by appraisers and by others. (Definition from The Appraisal Foundation.)

Value in exchange: Goods that have a utilitarian use and function that the market willingly pays for in money.

Value in use: The satisfaction of market wants and use provided by consumption of goods and services that may not be equivalent to market value.